Growth in new manufacturing orders in the UK ground to "near stagnation" levels in September as new figures today showed the sector suffered its worst performance for 17 months.
British companies reported weaker increases in production, new business and new export orders.
As a result the closely-watched CIPS/Markit purchasing managers' index survey showed a worse than expected reading of 51.6, down from 52.5 in August which itself was a 14-month low.
The figure is still above the 50 threshold indicating growth but the overall survey paints a picture of a broad slowdown with price pressure also subdued.
Markit senior economist Rob Dobson said export orders had slowed because of the continued weakness in euro zone countries and the strength of the pound against the euro last month.
Only demand from the US, Germany, Scandinavia and the Middle East helped offset the slowdown in new export orders.
"The strong upsurge in the UK manufacturing sector at the start of the year appears to have run its course, with the September PMI at a 17-month low and growth of new orders easing to near stagnation," Mr Dobson said.
The downbeat survey will give Bank of England policymakers more food for thought when they consider whether to raise interest rates for the first time in more than five years from their historic 0.5% low.
"With manufacturers reporting weaker selling price increases and a fall in input costs, the picture of waning inflationary pressures painted by industry may provide some leeway for the Bank of England to hold off from raising rates even if strong growth persists," he added.
UK firms reported that new business orders rose at softer rates in both domestic and overseas markets.
